02549 - Economic Analysis

Learning outcomes

The course main areas of interest are: (i) economic systems and reduction of complexity: introduction to economic analysis; (ii) paradigms of economic theory; (iii) economic theories and institutional assumptions:  the role of separation theorems; (iv) connections, social norms, institutional set-ups.
The course explores systematic guidelines in the assessment of economic knowledge and in the interpretation of  economic  literature. This is done through discussion and logical co-ordination of analytical themes central in the evolution of the discipline.  Teaching consists of formal lectures and classes.

Course contents

Lectures follow the syllabus below:

1. Economic systems and reduction of complexity

2. Paradigms of economic theory:  overview and introduction to pure production and pure preference models

3. Pure preference models
3.1. Preference and rationality criteria
3.2. Maximization and satisficing choice (Herbert Simon's approach)
3.3. Weighted maximization and rational choice: multiple objectives (Bruno de Finetti's approach)

4. Pure production models
4.1. Pure labour economies and production  technologies
4.2. Economies with labour and capital-goods technologies
4.3. Production technologies and co-ordination criteria

5. Economic theory and institutional assumptions: separation theorems

6. Connections, social norms, institutional arrangements
6.1 Connections and networks
6.2. Institutional arrangements and co-ordination criteria
6.3. Co-ordination and social norms
6.4. Co-ordination and the institutions of production

Teaching includes research seminars by Antonio Andreoni (SOAS, University of London, and Institute of Manufacturing, Cambridge), Ivano Cardinale (Emmanuel College and Judge Business School, Cambridge), and Enrico Petracca (University of Bologna).

Classwork is an essential component of the course. Students will be required to comment on selected topics of economic literature. Topics for classwork will be assigned at the beginning of the course. The classes are coordinated by Enrico Petracca (University of Bologna).
  Copyright 2006    [build.533 del 28/06/2010]
ALMA MATER STUDIORUM - Università di Bologna

Readings/Bibliography

Essential readings are marked with an asterisk:

 

Topic 1:

 

*H. Simon, ‘The Architecture of Complexity', Proceedings of the American Philosophical Society,  vol. 156, n. 6, December, 1962, pp. 122-137.

H. Simon, ‘Near decomposability and the speed of evolution',  Industrial and Corporate Change, 2002,  11 (3), pp. 587-99.

 Loasby, Choice, Complexity, and Ignorance: an Enquiry into Economic Theory and the Practice of Decision-making, Cambridge, Cambridge University Press, 1976, pp. 29-57.

 

Topic 2:

  *L. L. Pasinetti, 'The Theory of Value- a Source of Alternative Paradigms in Economic Analysis', in M. Baranzini and R. Scazzieri, eds., Foundations of Economics. Structures of Inquiry and Economic Theory , Oxford and New York, Basil Blackwell, 1986, pp. 409-31.

*J. Hicks, ‘ “Revolutions” in Economics', in S. Latsis, ed., Method and Appraisal in Economics, Cambridge, Cambridge University Press, 1976, pp. 207-18.

*A.Quadrio Curzio e R. Scazzieri, Sui momenti costitutivi dell'economia politica, Bologna, Il  Mulino, 1983, 1985 (seconda edizione).

M. Baranzini e R. Scazzieri, ‘Knowledge in Economics' , in M. Baranzini e R. Scazzieri, eds.,  Foundations in Economics. Structures of Inquiry and Economic Theory , Oxford and New York,Basil Blackwell, pp. pp. 1-87.

R. Scazzieri, ‘Dinamiche strutturali e idee cardine: prospettive di ricerca sulla teoria economica del Novecento', in G. Antonelli, M. Maggioni,  G.Pegoretti, F. Pellizzari, R. Scazzieri, R. Zoboli (eds), Economia come scienza sociale. Teoria, istituzioni, storia. Studi in onore di Alberto Quadrio Curzio, Bologna, Il  Mulino, 2012, pp.   417-434.

 

Topic 3:

*de Finetti, B. , ‘Due lezioni su “Teoria delle Decisioni”, in Accademia Nazionale dei Lincei, Contributi del Centro Linceo Interdisciplinare di scienze matematiche e loro applicazioni, n. 6, Roma, Accademia nazionale dei Lincei, 1975, pp. 643-656.

Crisma, L. , 'Dalla certezza all'incertezza: Aspetti dinamici in una impostazione soggettiva', in  Atti del convegno su incertezza ed economia, Trieste, LINT, 1988 (soprattutto pp. 11-22).

 

*V.L. Smith, Rationality in Economics. Constructivist and Ecological Forms, Cambridge,    Cambridge University Press, 2008, pp. 1-42.

*H. Simon, Reason in Human Affairs , Stanford, Stanford University Press, 1983.

 

*A. Sen, ‘Maximization and the Act of Choice', Econometrica, vol. 65, No. 4 (Jul., 1997), pp. 745-779.

 

P. Suppes, ‘The Limits of Rationality',  Grazer Philosophische Studien, 12/13, pp. 85-101, (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), http://suppes-corpus.stanford.edu/article.html?id=227 )

 

P. Suppes, ‘Rationality, Habits and Freedom', in  N. Dimitri, M. Basili and I. Gilboa (eds), Cognitive Processes and Economic Behavior. Proceeding of a Conference held at Certosa di Pontignano, Siena, Italy, July 3-8, 2001, pp. 137-67 (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), Stanford , http://suppes-corpus.stanford.edu/article.html?id=394 ).

 

P.Suppes, ‘The Good and the Bad, the True and the False', in M.C. Galavotti, R.  Scazzieri and P. Suppes, eds., Reasoning, Rationality and Probability,  Stanford, CSLI Publications, 2008, pp. 13-35. 67 (in Collected Works of Patrick Suppes, Section III (Methodology, Probability and Measurement), Stanford, http://suppes-corpus.stanford.edu/article.html?id=425 ).

 

Gigerenzer, G. e  Selten, R., eds., Bounded Rationality: The Adaptive Toolbox, Cambridge, Mass., MIT Press,  2001.

 

 Byron, M., ed., ‘Introduction', in M. Byron, ed., Satisficing and Maximizing. Moral Theorists on Practical Reason, Cambridge, Cambridge University Press, 2004, pp. 1-13.

 

Topic 4:

 

*L.L. Pasinetti, Structural Economic Dynamics. A Theory of the Economic Consequences of Human Learning, Cambridge, Cambridge University Press, Chapter II.

* L.L.Pasinetti, Lectures on the Theory of Production, New York, Columbia University Press and London, Macmillan, 1977.

 

*L.L. Pasinetti e R. Scazzieri, ‘Capital Theory: Paradoxes', in The New Palgrave Dictionary of Economics. Second Edition (eds. Steven N. Durlauf and Lawrence E. Blume), London,  Palgrave Macmillan, 2008;  The New Palgrave Dictionary of Economics Online.    Palgrave Macmillan.

http://www.dictionaryofeconomics.com/article?id=pde2008_C000042.

 

*R. Scazzieri, A Theory of Production. Tasks, Processes and Technical Practices, Oxford, Clarendon Press, 1993, pp. 27-33, 83-101.

I. Cardinale and R. Scazzieri, ‘ A Task-Function Heuristics  for Production Dynamics', Ph.D. Programme in Science, Cognition, Technology, University of Bologna, 2012, mimeo.

R. Scazzieri, ‘Processi di produzione: aspetti analitici e caratteristiche morfologiche', in A. Romagnoli, ed., Teoria dei processi produttivi. Uno studio dell'unita' tecnica di produzione, Torino, Giappichelli, 1996, pp.67-77.

 

Topic 5:

 

B.de Finetti, B. (1952).  “Sulla preferibilità” , Giornale degli economisti e annali di economia, 1952,  1 1, pp. 685-709.   

 

  *L. L. Pasinetti, ‘The stage of pure economic theory', in L.L. Pasinetti, Keynes and the Cambridge Keynesians. A ‘Revolution in Economics' to be Accomplished, Cambridge, Cambridge University Press, pp. 274-304.

 

    R. Scazzieri, ‘The Feasibility of Normative Structures', in M.C. Galavotti, ed., Bruno de Finetti: Radical Probabilist , London, College Publications, 2009, pp.  129-152.

    

 

 Topic 6:

 

*S. Goyal, Connections. An Introduction to the Economics of Networks, Princeton, Princeton University Press, 2007, pp. 9-24.  

   

*A. Lomi, Reti organizzative: teoria, tecnica e applicazioni, Bologna, Il Mulino, 1991.

  

*N. Georgescu Roegen, ‘The institutional aspects of peasant communities: an analytical view',  in N. Georgescu-Roegen, Energy and Economic Myths, New York, Pergamon Press, pp.  199 - 231.

*R. Scazzieri, ‘Modelli di societa' civile', Filosofia politica , vol. xiii, n.3, dicembre 1999, pp.363-78.

 

R. Burt,  Structural Holes.  The Social Structure of Competition, Cambridge, Massachusetts, Harvard University Press, 1995

 

R. Scazzieri, ‘Context, congruence and co-ordination', in M.C. Galavotti, R.  Scazzieri and P. Suppes, eds., Reasoning, Rationality and Probability, Stanford, CSLI Publications, 2008, pp.187-207.

 

M. Landesmann and R. Scazzieri, ‘The production process: description and analysis', in M. Landesnmann and  R. Scazzieri (eds.), Production and Economic Dynamics, Cambridge, Cambridge University Press,1996, pp. 191-228.

 

M. Landesmann and  R. Scazzieri, ‘Coordination of production processes, subsystem dynamics and structural change', in M. Landesmann and R. Scazzieri (eds.),  Production and Economic Dynamics, Cambridge, Cambridge University Press,1996, pp. 304-43.

 

A. Andreoni and  R. Scazzieri, ‘Triggers of Change: Structural Trajectories and Production Dynamics', Cambridge Journal of Economics, 2013.

 

A. Pabst and  R. Scazzieri, 'The Political Economy of Civil Society', Constitutional Political Economy, 2012 (4, December), pp. 337-56.

 

 

 

 

 

Teaching methods

Critical survey of the literature, discussion of general interpretive framework, critical analysis of fundamental sources.

Assessment methods

Internal coursework assessment with final evaluation (Component I)
Presentation in the Laboratory of Economic Analysis on a topic and bibliography preliminarily agreed with the Lecturer (Component II) and subsequent submission of research paper on the same topic .
Students unable to attend the Laboratory of Economic Analysis are asked to satisfy the requirements of Component II  by submitting two research papers on topics and bibliographies preliminarily agreed with the Lecturer

Teaching tools

The course consists of formal lectures and classes. Active participation in discussion and classwork is required.

Office hours

See the website of Roberto Scazzieri